This has followed the Federation of Small Businesses (FSB) warning its members about the threat of company identity fraud, after reports of bogus calls from people pretending to be Companies House officials.
According to the FSB, fraudsters have targeted small businesses to try to obtain secure authentication codes for Companies House files. These could then be used to take the innocent company’s details in order to set up fake businesses to steal money, goods and services.
The FSB has warned small businesses to take care when giving out their own company information. But Equifax believes businesses should also check that the information held at Companies House is correct and has not been altered fraudulently. “Unfortunately Companies House only keeps a record of the documents it receives and doesn’t check these for accuracy,” confirmed Neil Munroe, external affairs director, Equifax. “Companies House has no legal right to question applications it receives to update business details. The result is that fraudsters could be changing vital information about a business, such as details of directors and registered office, and the company’s real owners won’t know anything about it until they start being chased for unpaid bills.
“We are therefore advising that companies get a copy of their own company report. This will immediately show if any details about the business have been changed without their authority.”
Equifax is also advising small businesses to thoroughly check the identity of new customers and suppliers to avoid being hit by bad debt and, in particular, corporate ID fraud. “In every case of Corporate ID theft there will be at least two victims, the company that is being cloned and any other company that then supplies goods or services to that cloned company,” said Munroe. “Common sense and due diligence are key to preventing businesses from becoming one of these victims."
